Bonds | Private Debentures | Bonds and Debentures Information | F.A.Q | Contact Us
 

 

 
    Bonds are instruments issued by governments, state enterprises and financial institutions that are founded by law; bonds bear the promise that bearers will be paid the value of the bond within the indicated time frame, along with interest return according to specified interest rates. Private debentures are instruments issued by private corporations, granting higher return than government bonds, while the credit risk is greater. Each debenture is usually affixed with a Credit Rating, so that the financier is able to evaluate the investment liability.

 
    WHAT ARE SOME ADVANTAGES OF BONDS?
   
1. Use as collateral for various contracts with public agencies.
2. Use as collateral for electricity usage.
3. Use as collateral for new job admission.
4. Use as collateral for loan request.
5. For posting bail for suspects at courtrooms and police precincts.
6. For ensuring liquidity of assets according to Commercial Bank laws.

    HOW CAN FINANCIERS INVEST PROPERLY
   
  • Treasury bills and central bank bonds are ideal for investors wishing to invest in the short run (maturity within a year); multiple investment options are available so as to suit liquidity management of the financier.
  • Government bonds are suitable for investors requiring security for long term investments, since government bonds are classified as assets with No Default Risk. In addition, no Interest Rate Risk is incurred upon being in possession of the bond until maturity. Investors are also able to sell bonds in the secondary market should they require a conversion of assets into cash, as the secondary market is highly flexible, while the price offered will correspond to the current market value.
  • State enterprise bonds grant higher return than government bonds - ideal for investors requiring security from investment; bonds may be kept by bearers until maturity, while the return will be greater than the one granted by government bonds.
  • Private debentures are ideal for financiers aiming at high returns, while being ready to accept increased liability.

        WHAT TYPE OF FINANCIER ARE YOU?
    IN WHAT KIND OF DEBT INSTRUMENT SHOULD YOU INVEST ?
       
    Risk / Return 1 2 3
    1 - Treasury Bills
    - Central Bank Bonds
    - Government Bonds     		- State Enterprise Bonds (endorsed by Treasury Dept.)  
    2   - State Enterprise Bonds (not endorsed by Treasury Dept.) - Private Debentures
    3     - Private Debentures


        DEBT INSTRUMENT COMPARISON TABLE
       
    Type of Debt Instrument Issuer Risk Return Duration
    Treasury Bills Treasury Department Low Low Less than a year
    Central Bank Bonds Bank of Thailand Low Low Less than a year
    Government Bonds Treasury Department Low Low More than a year
    State Enterprise Bonds State Enterprises - Low (endorsed by Treasury Dept.)
    - Low-Medium (not endorsed by Treasury Dept.) /td>     		Higher than government bonds More than a year
    		 
    		 
     
     
     
     

    1222 Rama III Road, Bang Phongphang, Yan Nawa, Bangkok 10120 Thailand
    Telephone: (662) 296-2000 press 1572, Email : webmaster@krungsri.com